Rising salt cost, cattle virus pressure Eid rawhide trade

Desk Report :

As Eid-ul-Azha approaches, traders at Chakbaidyanath Mukam – the country’s second-largest rawhide market – have completed their seasonal preparations.

However, a sudden spike in salt prices and the outbreak of a bovine virus have raised serious concerns within the industry.

The virus, reportedly linked to overfeeding practices on cattle farms, has resulted in widespread skin infections, prompting a shift in the trading model. Salted rawhides are now being sold by weight, as the quality of hides has significantly deteriorated. Traders warn that even after salting, the infected hides fail to retain their value and quality.

Despite assurances from the Ministry of Commerce that salt imports will not be required this year due to sufficient domestic production, traders report a sharp increase in the price of unrefined salt.

The price has risen from Tk 10 to Tk 15 per kilogram – a 50 per cent jump – significantly raising processing costs in the leather industry, reports UNB.
Rokib Uddin Kamal, a local trader, noted that the price of a 70kg sack of salt has climbed from Tk 700 to Tk 1,050 in the span of a week, reflecting the Tk 5 per kilogram increase. He warned that the higher cost of rawhide preservation could force traders to lower prices for unsalted hides at the retail level, reducing overall profit margins.

The impact of the bovine virus has further complicated the situation. Infected hides are reportedly being sold for just Tk 10 to Tk 15 per kilogram, with many traders struggling to find buyers due to the poor quality.

Nurul Islam, a veteran leather trader at the Natore market, attributed the problem to excessive feeding on farms, which he said had led to skin infections and symptoms consistent with lumpy skin disease. “These rawhides lose their quality after salting,” he explained.

He expressed concern for seasonal traders, many of whom lack experience in assessing hide quality. “A seasonal trader might purchase an infected hide for Tk 700, but at the wholesale level, they might receive no more than Tk 50 to Tk 100 in profit. In such cases, both the trader and the dealer face losses,” he added.

Following a political transition on 5 August last year, Chakbaidyanath Mukam has seen a reduction in political interference. However, Abdul Halim, President of the Leather Traders’ Group of Natore-2, warned that if salt prices are not stabilised, the industry could face further disruption, including the risk of increased smuggling across the Indian border.

“Although this market operates year-round, Eid-ul-Azha accounts for nearly half of the country’s rawhide collection,” Halim noted. He urged the government to take urgent measures to stabilise salt prices, especially in light of the current global economic challenges.

He also cautioned that the ongoing squeeze on margins could drive smaller and marginal traders to seek alternatives, including informal cross-border trade, to mitigate losses.

China remains the primary export destination for Bangladeshi leather, followed by India and Turkey. Halim called on the government to intensify efforts to explore and develop new international markets to support the country’s leather industry.